Cars that are part of a vehicle trade-in program are on display at an auto expo in Yantai, Shandong province. [TANG KE/FOR CHINA DAILY]
BEIJING – China reported a rapid increase in auto trade-ins thanks to policy support designed to benefit consumers.
The Ministry of Commerce said Tuesday it had received over 4 million subsidy applications for trade-ins of passenger vehicles as of Monday under a mass renewal program initiated early this year.
Currently, people trading in an old car for a new energy vehicle are entitled to a 20,000 yuan ($2,781) subsidy, while those replacing for a fuel car will get 15,000 yuan.
The policy has effectively stimulated the auto market. China’s auto sales rose 7 percent year-on-year to 3.05 million units last month. In the first 10 months, auto sales across the country surpassed 24.6 million units in total.
The auto trade-in subsidies are part of a national program unveiled in March aimed at expanding domestic demand and shoring up the economy through equipment upgrades and consumer goods trade-ins.